Budget disappoints foreign investors

The Indian Budget 2009-10 presented by Finance Minister Pranab Mukherjee earlier this week, has disappointed many Indian American investors as it does not focus adequately on some of the key issues, including disinvestment and infrastructure development, IACC said on Friday.

Participants of a panel discussion organised here by the India America Chamber of Commerce said the budget does not adequately address the issues that investors are looking for, including disinvestment leading to the reduction of fiscal deficit and emancipation of the entrepreneurial spirit of India.

Also it does not adequately address the issue of investment in education by allowing private universities and increased government spending, they said.

Further, it does not address the issues of bolstering infrastructure for the power sector and of opening the economy to foreign investors, the Chamber said in a statement, which according to it is the majority opinion of the panelists at the discussion held in New York.

However, Deputy Consul General Ajay K Gondane defended the budget as a necessary step in the road to inclusive and calibrated growth.

He pointed out the example of Russia where quick divestment had led to chaos. He also pointed out that in the current market situation, the valuations may not be attractive enough for divestment.

The chamber President Rajiv Khanna said that the Chamber would be presenting its recommendations to the Indian government soon. "The eyes of the world are now turned to see whether the brightest spot on the globe, India, will go the way of Mexico or will (it) truly emerge as a world economic power and the growth engine for the world," Khanna said.